TMI BlogVat on food items delivered in trainsX X X X Extracts X X X X X X X X Extracts X X X X ..... I am going to start Online food delivery / Mobile catering services in trains in Gujarat State. My turnover of this service may go to around 26 lakhs per annum, so i have to pay vat / sale tax and service tax on these supplies. I have a doubt whether vat will be applicable only on food item amount which is currently in gujarat is 15% (12.5%+2.5%) and service tax will be applicable only on food ite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ms @ 9 %. (Considering 40 % abatment on outdoor catering). Please suggest if my thinking is not as per legal provisions. Thanks in advance. - Reply By Ganeshan Kalyani - The Reply = You are just selling the product and not providing any service. In case of hotel it serves the food. So both vat and service tax is applicable. But in my view in your case only VAT will be applicable. Thanks. - Rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly By KASTURI SETHI - The Reply = Dear Querist, Supply of foods and drinks by an outdoor caterer (Service Portion) is covered in the list of Declared Services under Section 66 E(i) of the Finance Act, 1994 (at serial No.9). Also refer to Para No.6.9.1 of Education Guide dated 20.6.12 of CBEC. Service Tax is to be paid on service portion i.e. 60% of the total amount (excluding taxes) in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terms of Notification No.24/12-ST dated 20.6.12 which is as follows:- 4. In the said rules, after rule 2B , the following rule shall be inserted, namely :- 2C . Determination of value of service portion involved in supply of food or any other article of human consumption or any drink in a restaurant or as outdoor catering. - Subject to the provisions of section 67 , the value of ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vice portion, in an activity wherein goods being food or any other article of human consumption or any drink (whether or not intoxicating) is supplied in any manner as a part of the activity at a restaurant or as outdoor catering, shall be the specified percentage of the total amount charged for such supply, in terms of the following Table, namely :- TABLE Sl. No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Description Percentage of the total amount (1) (2) (3) 1. Service portion in an activity wherein goods, being food or any other article of human consumption or any drink (whether or not intoxicating) is supplied in any manner as a part of the activity, at a restaurant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 40 2. Service portion in outdoor catering wherein goods, being food or any other article of human consumption or any drink (whether or not intoxicating) is supplied in any manner as a part of such outdoor catering 60 - Reply By KASTURI SETHI - The Reply = Cenvat credit is not to be availed in respect of inputs falling under Ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apter 1 to 22 of Central Excise Tariff Act. - Reply By KASTURI SETHI - The Reply = 'Supply' of food is service. The Querist is on right track. - Reply By YAGAY AND SUN - The Reply = Please check Section 2 (26) (e) of the Rajasthan VAT Act in this regard. For rates, please check appended link. http://blog.ritulpatwa.com/taxation-on-hotel-restaurants-in-rajasthan-f-y-2016-17/ - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Vat on food items delivered in trains - Query Started By: - Arpit Jain Dated:- 12-3-2017 Value Added Tax - VAT-CST - Got 5 Replies - VAT and Sales Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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